LEASES

3 Months Ended

Mar. 31, 2020

The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 years to 11.1 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the three months ended March 31, 2020 and 2019.

During the three months ended March 31, 2020 and 2019, the components of lease expense were as follows:



		Three Months Ended March 31,
	Income Statement Classification	2020		2019
Operating lease cost	Selling, general and administrative expenses	$	18,863	$	13,719
Variable lease cost	Selling, general and administrative expenses	2,635		2,097
Short-term lease cost	Selling, general and administrative expenses	540		898
Total lease cost		$	22,038	$	16,714

Supplemental cash flow information related to leases for the three months ended March 31, 2020 and 2019 was as follows:



	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	16,891	$	14,696
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	31,252	$	12,825
Non-cash net increase/(decrease) due to lease modifications:
Operating lease right-of-use assets	$	4,584	$	(5,174	)
Operating lease liabilities	$	4,573	$	(5,106	)

Weighted average remaining lease term and discount rate as of March 31, 2020 and 2019 were as follows:



	As of March 31, 2020		As of March 31, 2019
Weighted average remaining lease term, in years:
Operating leases	6.0		5.9
Weighted average discount rate:
Operating leases	3.3	%	4.0	%

As of March 31, 2020, operating lease liabilities will mature as follows:



Year ending December 31,	Lease Payments
2020 (excluding three months ended March 31, 2020)	$	50,933
2021	59,351
2022	42,665
2023	31,190
2024	26,870
Thereafter	62,988
Total lease payments	273,997
Less: imputed interest	(24,577		)
Total	$	249,420

As of March 31, 2020, the Company had committed to payments of $13,727 related to operating lease agreements that had not yet commenced. These operating leases will commence during various dates during 2020 with lease terms ranging from 2.0 to 10.9 years. The Company did not have any material finance lease agreements that had not yet commenced.